The genuine step-child of internet marketing is affiliate marketing, a tried and trusted approach for producing sales and marketing sites or products online. Numerous e-commerce websites owe a lot to affiliate marketing techniques– namely Amazon.com and CDNOW’s WebBuy system. Affiliate marketing is a highly efficient method to produce brand awareness and produce leads and service.
Affiliate marketing encourages ‘affiliates’ to offer or market a merchant’s products by ways of a profits share or commission system. In the early days of the web when affiliate marketing started (about late 1994) most merchants utilized a Cost-Per-Click system (known as CPC or CPM) where an affiliate earned money from every click to the merchant’s site produced from the affiliate’s site. Because of bad management and numerous fraudsters making the most of this system in numerous methods, only about 1% of affiliate marketing is now done this way. 80% of affiliate marketing is now on a cost-per-sale basis, where the affiliate gets commission for every single real SALE generated on the merchant’s website that is due to a referral from the affiliate– and the last 19% of affiliate marketing is on a cost-per-action basis, where the affiliate gets a revenue-share if the individual referred from their site in fact subscribes or registers with the merchant’s website.
Affiliate marketing is done through different types of methods or publisher sites – blog sites and RSS feeds ending up being quite a primary method, in addition to shopping and contrast websites, commitment sites and others.